TCS Rates applicable from FY 2021-22 (AY 2022-23) including Budget 2021 amendments

This article contains updated list of TCS Rates applicable for FY 2021-22 (AY 2022-23) i.e. w.e.f 01/04/2021. Article also explains various changes with respect to TCS Rates introduced in Budget/Finance Bill 2021. One of the major update being introduction of Section 206CCA, which prescribes higher rate of TCS applicable w.e.f 01/07/2021 for non filer of ITR. Thus, Introduction of new section 206CCA would impact TCS rates applicable to other sections/sub-sections from FY 2021-2022 (AY 2022-2023), as it provides for higher rate of TCS, as compared to normal TCS rates prescribed in law, in case of non-filer of ITRs.

Further concessional TCS rates were applicable for the period 14/05/2020 to 31/03/2021, as amended after outbreak of COVID-19 pandemic. Now normal TCS rates would be applicable w.e.f FY 2021-22 (AY 2022-23) and various rates have been provided in the article along with the section code to be selected at the time of payment of TCS Challan.

TCS Rates Amendment Applicable from FY 2021-22 (AY 2022-23)

Concessional TCS rates– Applicable till 31/03/2021 (as provided under “The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

Higher TCS Rates –

  • Applicable in case of non filer of ITRs (Section 206CCA w.e.f. 01/07/2021)
  • Proposed under Budget 2021.

No TCS u/s. 206C(1H)

  • In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable.
  • Proposed under Budget 2021.

Table Depicting TCS Rates applicable for FY 2021-22 (AY 2022-23)

TCS Deposit Challan Code TCS Section Description TCS Rate Remarks
6CA 206C(1) Alcoholic Liquor for Human Consumption 1%
6CB 206C(1) Timber obtained under a forest lease 2.50%
6CC 206C(1) Timber obtained by any mode other than under a forest lease 2.50%
6CD 206C(1) Any other forest produce not being timber or tendu leaves 2.50%
6CE 206C(1) Scrap 1%
6CF 206C(1C) Parking Lot 2%
6CG 206C(1C) Toll Plaza 2%
6CH 206C(1C) Mining & Quarrying 2%
6CI 206C(1) Tendu Leaves 5%
6CJ 206C(1) Minerals, being coal or lignite or iron ore 1%
6CK 206C(1D) Bullion & Jewellery Omitt. by Finance Act 2017 (w.e.f. 1-4-2017)
6CL 206C(1F) Motor Vehicle (any mode of payment) 1% Seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding 10 lakh rupees
6CM 206C(1E) Cash Sale of any goods (other than bullion/jewellery) Omitt. by Finance Act 2017 (w.e.f. 1-4-2017)
6CN 206C(1E) Providing any services (other than Ch-XVII-B) Omitt. by Finance Act 2017 (w.e.f. 1-4-2017)
6CO 206C(1G) Overseas Tour Program Package 5%

 

TCS in case of Non-Furnishing of PAN/Aadhar:

       10%

Every person being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package
6CP 206C(1G) Remittance under LRS for  education loan taken from financial institution mentioned under section 80E 0.50% Amount or aggregate of the amounts in excess of 7 lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education
6CQ 206C(1G) Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E) 5%

 

 

TCS in case of Non-Furnishing of PAN/Aadhar:

       10%

Person, being an authorised dealer, who receives an amount/aggregate of amounts exceeding 7 Lakh, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India
6CR 206C(1H) Sale of Goods

 

0.10%

 

 

TCS in case of Non-Furnishing of PAN/Aadhar:

          1%

Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G)

 

Budget 2021 Update

In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable

 

To be Notified

 

206CCA

 

Higher Rate of TCS for Non Filer of ITR

 

Refer Note 2 below

 

Budget 2021 Update

Refer Note 2 below

Note 1: TCS Rates on Non Furnishing of PAN u/s. 206CC

As per section 206CC, notwithstanding anything contained in any other provisions of this Act, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:—

 (i) at twice the rate specified in the relevant provision of this Act; or

(ii) at the rate of five per cent.

Note 2: TCS Rates on Non Filing of ITR u/s. 206CCA w.e.f 01/07/2021 (Budget 2021 Amendment)

2.1 TCS Rate

Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –

  • twice the rate specified in the relevant provision of the Act; or
  • the rate of 5%

2.2 TCS rate in case of Non Availability of PAN and not filing of ITR

If the provision of section 206CC (i.e. PAN not available) of the Act is applicable to a “specified person”, in addition to the provision of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC of the Act.

2.3 Collectee i.e. Specified Person

 “Specified person” proposes to means a person

  1. who has not filed the returns of income for both of the two assessment years relevant to the two previous years which are immediately before the previous year in which tax is required to be deducted or collected, as the case may be.
  1. further the time limit for filing tax return under section 139(1) of the Act has expired for both these assessment years.
  1. There is another condition that aggregate of TDS and TCS in his case is Rs. 50,000 or more in each of these two previous years.
  1. Specified person shall not include a non-resident who does not have a permanent establishment in India.

Note 3: Sunset period for Lower TCS Rates due to COVID-19 (14/05/2020 to 31/03/2021)

After outbreak of COVID-19 pandemic, Govt has specified Lower TCS rates in “The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020” i.e. In case the provisions of sub-sections 206(1) [except the goods referred at serial number (i) in the TABLE], (1C), (1F) or (1H) require collection of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, then, notwithstanding anything contained in these sub-sections the collection of tax shall be made at the rate being the three-fourth of the rate specified in these sub-sections. These concessional rates of TCS were applicable till 31.03.2021 only. Hence old TCS rates (prior to 14/05/2020) would be applicable w.e.f 01.04.2021. Various TCS Rates applicable for FY 2021-2022 (AY 2022-2023) have been summarized above in this article.

Note 4: TDS Rates applicable for FY 2021-22 (AY 2022-23) including Budget 2021 amendments

Refer article https://taxguru.in/income-tax/tds-rate-chart-fy-2021-2022-ay-2022-2023.html for various TDS rates, their sections along with changes introduced by finance bill 2021. These TDS rates are applicable for AY 2022-23 (FY 2021-22).

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TCS & TDS Rates compiled by:  CA Sagar Gambhir | FCA, DISA (ICAI), DIRM (ICAI), B.COM | [email protected]

Author can be reached at [email protected] for any queries, issues & recommendations relating to article. Any feedback for improvement would be really appreciated.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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